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1. For the company Ocean, which builds boats, we have the following production function Trabajo (#empleados Por semana) Produccin (botes por Semana) Costo total Costo

1. For the company Ocean, which builds boats, we have the following production function

Trabajo

(#empleados

Por semana)

Produccin

(botes por

Semana)

Costo total

Costo fijo total

c. variable total

c. fijo por unidad

c. variable por unidad

c. total por unidad

c. marginal

1

1

2

3

3

6

4

10

5

15

6

21

7

26

8

30

9

33

10

35

Assume that the price of labor is $400 per week per employee. The total fixed cost is $10,000 per week.

to.

a. Calculate the total fixed cost, total variable cost, and total cost for each level of production.

b. Calculate the fixed cost per unit, the variable cost per unit, the total cost per unit, and the marginal cost for each level of production.

c. Assuming that the total fixed cost increases to $11,000, indicate which costs would be affected.

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